Verification software provider gains $9.20 to $21.20, best IPO this year

NEW YORK (CNNfn) - Simplex Solutions Inc., a provider of verification software, surged 77 percent Wednesday, becoming the best performing IPO this year.

Simplex gained $9.20 to $21.20 while Briazz Inc., a seller of branded foods, closed nearly flat at $8.03 on the Nasdaq.

Simplex's performance is the strongest since the IPO from Transmeta Corp., a mobile chip maker, which rose 115 percent on Nov. 7, according to CommScan, a New York-based investment banking research firm.

Technology deals have been absent in the IPO market this year, and analysts were surprised by Simplex's huge pop. The company, which provides design verification software and services for chip firms, is a pure-play tech deal.

Simplex is the second tech IPO this year. The last one, Verisity Ltd., also provides technology to verify the designs of chips. Verisity (VRST: up $1.64 to $17.00, Research, Estimates) made its market debut in March when it gained 20 percent.

"This is kind of amazing," said Corey Ostman, co-CEO of Alert-IPO.com. "We've seen the technology market somewhat stabilize."

While successful, the Simplex IPO alone will not be enough to spur a rebound for new issues. "If we see more techs do well this will provide some sort of a footing for the IPO market," Ostman said.

Simplex came in at the top of its range late Tuesday, selling 4 million shares at $12 via lead underwriter Credit Suisse First Boston. Simplex had planned to offer 4 million shares at $10-to-$12 each.

Briazz used a Dutch auction to sell its shares. The process, in which the price of the shares is gradually lowered until it meets a bid and gets sold, is meant to ensure an efficient and fair marketplace for selling shares in an IPO.